The Hindu Business Line : Syndicate Bank bond issue sees good demand

Advertisement

Bangalore Feb. 22 Syndicate Bank has received overwhelming support for its upper tier-II bond issue that opened for subscription on February 5.

The size of the issue then proposed was Rs 100 crore with a green shoe option of Rs 140 crore. However, the bank said in a statement today that it could mobilise Rs 200 crore.

The bond is priced at 9.30 per cent for 10 years with a 30 basis point increase for another five years in the event of the call option not being exercised. The funds raised through the bond issue are to be used for boosting capital. , since the bank's risk-weighted assets have been on the increase due to acceleration in credit offtake. For the third quarter of this financial year, the bank had reported a credit growth of 48 per cent over the corresponding period of the last financial year

Bankers said that the aggressive pricing was triggered by the spate of high coupon issues. These included the recent bond issue by the housing finance behemoth, HDFC. HDFC recent Rs 200 crore issue with bullet redemption at the end of five years, was priced at 9.20 per cent. HDFC is a "AAA" rated issue. Syndicate Bank is rated one notch lower at "AA+" (double A plus) by Crisil.

More Stories on : Corporate Bonds | Public Sector Banks

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Morgan Stanley, JM Financial part ways

Corporation Bank bags IBA award

Rupee falls against dollar

Max India to raise Rs 1,000 cr via QIP

Syndicate Bank training institute ties up with CMC

UCO Bank begins moving recap bonds into SLR slot

Bond prices decline

Syndicate Bank bond issue sees good demand

More bank support for shipping likely

Call rates marginally lower

UTI Bank, IFC arm join hands for SME financing

Union Bank ties up with New India Assurance

Service tax in e-system

`Targeted subsidies to poor can check inflation better'

RBI fiat on customer complaints